1. /faculteit technologie management 1 Linear & Nonlinear WIP Clearing in Supply Chain Operations Planning Barış Selçuk, Jan C. Fransoo and A. (Ton) G. De Kok 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece

2. /faculteit technologie management 2 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece PU1 I0 PU2 I1 PU3 I2I3 Customers SCOP L1L2L3 OPU1OPU2OPU3

3. /faculteit technologie management 3 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Clearing functions in the literature Graves (1986), "Fixed lead time" Karmarkar (1989), "Saturating" –Zäpfel and Missbauer (1993), Missbauer (2002) –Asmundsson et.al. (2005) Billington et.al. (1983), Hackman and Leachman (1989), "Combined" μ α Fixed Capacity Fixed Lead Time Combined Saturating WIP Throughput Clearing Function: The mathematical representation of expected throughput over a time period as a function of the work-in-process (WIP) over that period.

4. /faculteit technologie management 4 Three different WIP clearing assumptions 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Traditional Linear (TL): Long Term Nonlinear (LTN): Short Term Nonlinear (STN): SCOP OPU PU, Exp(μ) RF Customers

5. /faculteit technologie management 5 Supply Chain Operations Planning (SCOP) 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece SCOP OPU PU RF Customers Demand forecasts

6. /faculteit technologie management 6 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Operations Planning Unit (OPU) SCOP OPU PU RF Customers Demand forecasts Advanced: Simple:

7. /faculteit technologie management 7 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Experimental design STN LTN TL L=4 FactorsTreatments Clearing Function:TL, LTN, STN Operational Planning:Simple, Advanced Utilization:80%, 90% Demand Uncertainty:10%, 50%, 100% # of Treatments:36

8. /faculteit technologie management 8 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Results: Costs Utilization: 80%, Operational planning: Simple Utilization: 90%, Operational planning: Simple

9. /faculteit technologie management 9 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Results: Costs Utilization: 80%, Operational planning: Advanced Utilization: 90%, Operational planning: Advanced

10. /faculteit technologie management 10 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Results: Costs Conclusions: STN is the best choice for a lower total cost. STN provides lowest WIP while indifferent in echelon inventory for the majority of the cases. For modelling the short term behaviour in the shop STN clearing function is favorable to TL and LTN clearing functions. SCOP model has a better anticipation of the operational dynamics of the manufacturer in the near future. Advanced operational planning is better off only for STN, but not for TL and LTN.

11. /faculteit technologie management 11 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Results: Delivery performance Utilization: 80%, Operational planning: Simple Utilization: 90%, Operational planning: Simple

12. /faculteit technologie management 12 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Results: Delivery performance Utilization: 80%, Operational planning: Advanced Utilization: 90%, Operational planning: Advanced

13. /faculteit technologie management 13 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Results: Delivery performance Conclusions: For simple operational planning function, STN provides the best delivery performance while TL provides the worst. For advanced operational planning function, TL provides the best delivery performance while STN provides the worst.

14. /faculteit technologie management 14 5th Int'l Conference on "Analysis of Manufacturing Systems – Production Management", Zakynthos Island, Greece Future Research Development of models and providing analysis for multi-stage manufacturing. Development of a lead time adaptive approach for supply chain operations planning. –Single-stage manufacturer and distributor. –Multi-stage manufacturing.